Octa Pace

Volume 1, Number 2, October-December 2012 ISSN (P):2279-0934, (O):2279-0942
International Journal of Retailing & Rural Business Perspectives Pezzottaite Journals. 187 | P a g e

AN EMPIRICAL STUDY OF OCTAPACE CULTURE AND
ORGANIZATIONAL COMMITMENT

Mohammad Hassan Jafri
1

ABSTRACT

Various cultural frameworks have been studied in relation to organizational commitment and its different types but
OCTAPACE culture. The present research is an exploratory research designed to investigate the influence of OCTAPACE
culture on organizational commitment and also on the three dimensions (types) of organizational commitment (affective,
normative and continuance commitment).

Data were gathered on a structured questionnaire covering all variables of interest from a total of 210 employees, taken
randomly, working in public sector organizations in Bhutan. The result revealed that OCTAPACE Culture influences
organizational commitment significantly. Results also showed that different dimensions of OCTAPACE Culture have varying
effects on different types of organizational commitment. Implication of the research is that in order to develop employee
engagement and commitment towards their organization, management can use OCTAPACE Culture as a strategy. Further the
research has also implication in the sense that management can focus more on those aspects / dimensions of OCTAPACE
Culture which results into the types of commitment management wants to emphasize upon.

KEYWORDS

OCTAPACE Culture, Organizational Commitment, Affective Commitment, Normative Commitment, Continuance
Commitment etc.

I NTRODUCTI ON

Role of organizational culture in organizational performance is gaining wide recognition across the globe especially in present
volatile, uncertain, unpredictable and highly competitive business environment. Academicians and practitioners have realized that
organizational culture influences employee performance (Lee & Yu, 2004) and organizational performance (Saeed & Hassan,
2000, Hsu et al., 2009) significantly including financial performance of the company (Sanders & Cooke, 2005). Starbucks,
Continental Airlines, Kentucky Fried Chicken (KFC), Ernst and Young (E & Y), Hyundai Car (UK) etc. have become high
leading organisations because of changes in their corporate culture and these changes have led to a massive positive impact on the
organisational performance (Zain, Ishak & Ghani, 2009). Organizational culture influences and shapes employee attitude and
behaviour which in turn influences employee and organizational performance.

Employees are the currency of successful business especially in service industry. Employee mindsets- their fundamental attitudes
and behaviors matter to achieve and maintain high performance (Thomas, Harburg & Dutra, 2007). One of the attitudes that could
lead to high performance is employees organizational commitment. That is why probably, organizational commitment has
emerged as a promising area of research in recent time (Adebayo, 2006; Nehmeh, 2009).

Organizational culture has been the subject of exploration for academics and practitioners since long time. Various dimensions of
organizational culture such as communication, training and development, rewards and recognition, risk taking, creativity and
innovation, team and people oriented, result oriented etc. have been explored in relation to several relevant organizational
outcomes including commitment. But probably no empirical studies have been undertaken to explore influence of OCTAPACE
culture on organizational commitment. OCTAPACE culture is relevant and critical for business performance and success in the
present business scenario (Academy of Human Resources Development, 2009). The present study is a modest attempt to fill this
void. Thus the present study is exploratory in nature and aimed at finding the influence of OCTAPACE Culture on organizational
commitment. Also the study intends to find out that how different dimensions of the OCTAPACE culture influences different
types of organizational commitment.

CONCEPTS AND LI TERATURE REVI EW

Organizational Commitment

Building employee commitment is fundamental to sustained business success. Organisations that can successfully harness the
commitment of their employees enjoy several distinct competitive advantages. Committed employees execute business strategies
more successfully and are more flexible and adaptive to changing business conditions, can produce superior shareholder value
through lower operating costs and higher revenues and profits. Committed employees demonstrate higher levels of integrity,
support customers and colleagues more effectively and are more prepared to go the extra mile, beyond the call of duty, and all
this can help in creating a winning organization.

Organizational commitment is a psychological state that binds an employee to an organization. Two approaches have been used to
define the commitment by researchers One-dimensional and Multidimensional approach. Multidimensional approach also called

1
Lecturer, Gaeddu College of Business Studies, Royal University of Bhutan, Bhutan, hassaan_j@rediffmail.com

as Three-component model of organizational commitment, has gained substantial popularity since its inception (Wasti, 2005). In
this study, we operationalized organizational commitment as a multi-dimensional construct. Multidimensional approaches view
organizational commitment as a psychological state that consists of three components Affective, Continuance and Normative
Commitment (Meyer & Allen, 1997).

Affective commitment refers to the emotional attachment with the organization based on the match with the organizational values
and goals to that of the employees personal values and goals. It is the most desired form of commitment sought by organizations.
Employees with high level of affective commitment possess a strong belief in and acceptance of organizational goal, objectives
and values (Mowdey, Steers & Porter 1979). Normative commitment refers to the sense of obligation and responsibility to remain
with the organization. Employees with high normative commitment believe that they ought to continue working for their
organization because it the right and moral thing to do (Meyer & Allen 1991; Meyer, Stanley, Herscovitch & Topolnystsky,
2002). Continuance commitment is a form of psychological attachment to an employing organization that reflects the employees
perception of the loss he/ she would suffer if employees were to leave the organization (Allen & Meyer, 1990).

Allen & Meyer (1990) proposed that continuance commitment develops on the basis of two factors: (1) number of investments
(side-bets) individuals make in their current organization and (2) perceived lack of alternatives. These investments can be
anything that the individual considers valuable that would be lost by leaving the organization. These various types of commitment
will have varying effects on the organizations performance and a person can display aspects of all of them. Meyer & Allen
(1991) argued that these components are not mutually exclusive. This implied that employees could be simultaneously committed
to an organization in an affective, continuance and normative commitments at varying levels of intensity. Employees could at any
point of time have a commitment profile that reflected high or low levels of all components (Meyer et al. 2002). These different
profiles would lead to different effects on workplace behaviour.

Organizational Culture

Despite the great attention received by Organizational Culture (OC), there has no universal agreed upon definition for the
construct (Lewis, 2002). Most of the definitions provided for the construct indicated that it is the shared system of values, beliefs,
and attitudes that are common among the organizational individuals and influence their judgments (OReilly & Chatman, 1996;
Mckinnon et al., 2003). Different organisations have their own distinctive cultures. Through tradition, history and structure,
organisations build up their own culture. Culture shapes employees attitudes, values, motivation, and performance (Lather,
Puskas, Singh & Gupta, 2010). Culture works as lens through which employees see organizational expectations and obligations.
Organizational culture affects companys financial performance (Kotter & Heskett, 1992) and also is critical in attracting and
retaining talent, change management, creating energy and momentum, engaging employees, creating synergy between work
behaviour and organizational goal (Eikenberry, 2010).

OCTAPACE Culture

OCTAPACE culture is relevant and critical for business performance and success and brings higher efficiency and organizational
effectiveness (Academy of Human Resources Development, 2009). Organizations such as Infosys, Wipro, Tata Steel etc. are
successful and growing which can also be attributed to the tremendous impact of OCTAPACE culture (Academy of Human
Resources Development, 2009). Empirical studies indicated that the culture of OCTAPACE values is imbibed in the culture of the
many organizations to a good or moderate degree (Alphonsa, 2000; Kumar & Patnaik, 2002; Bhardwaj & Mishra, 2002).

OCTAPACE culture is represented by occurrence of values / ethos of Openness, Confrontation, Trust, Authenticity, Pro-action,
Autonomy, Collaboration and Experimentation. It deals with the extent to which these values / ethos are promoted in organisation.

Openness & Risk Taking

The value deals with the extent employees in the organization feel free to express their ideas, willing to take risks and
experiment with new ideas and new ways of doing things.

Confrontation

The value deals with the extent employees in the organization takes challenges face and not shy away from the
problems and work jointly with others concerned to find its solution.

Trust

The value deals with the extent employees have mutual faith and between employee and management with respects to
work, information sharing, helping etc. and can be relied upon what other person says and do.

Authenticity

Authenticity is the value underlying trust. The value deals with the extent employees are willingness to acknowledge the
feelings he/she has, and accept him / her as well as others who relate to him/her as persons.


Pro-activity

The value deals with the extent employees are action oriented, willing to take initiative and show a high degree of
proactively. They anticipate issues and act or respond to the needs of the future.

Autonomy

The value deals with the extent employees are willingness to use power without fear, and helping others to do the same.
Employees have some freedom to act independently within the boundaries imposed by their role/job.

Collaboration

The value deals with the extent employees work together and use one anothers strength for a common cause. Involves
strategies, workout plans of action and implement them together.

Experimenting

Experimenting as a value emphasizes the importance given to innovation and trying out new ways of dealing with
problems in the organization.

Organizational Culture and Organizational Commitment: A Link

Organizational culture and organizational commitment is related to each other (Purang & Sharma, 2007). Pollitts (2005) research
findings indicated that organizational culture is the strongest strategic lever in creating an engaged and committed workforce.
Organizational culture works as a catalyst for employees commitment towards their organization. There are studies that have
examined the link between different aspects of corporate culture and organizational commitment (Karia & Ahmad, 2000; Saeed &
Hassan, 2000; Boon & Arumugam, 2006). But the researcher has not found any research establishing a link between OCTAPACE
culture and organizational commitment. Although there are some researches which explored different dimensions of OCTAPACE
as an individual construct and not as OCTAPACE culture perspective. Authenticity is found to be related to organizational
commitment. Findings of a study by Kliuchnikov (2011) indicate that a positive and significant relationship exists between
authentic leadership and affective organizational commitment. A meta-analysis conducted by Humphrey, Nahrgang & Morgeson
(2007) showed that perceived job autonomy is positively related to important work outcomes, including organizational
commitment. Job autonomy is capable of stimulating high levels of commitment to organization (Parker, Wall & Cordery, 2001),
specifically affective commitment (Mowday, Steers & Porter, 1979; Meyer & Allen, 1991; Karim, 2010). Teamwork
(collaboration) facilitates the meeting of affiliate needs within the workplace and has been directly connected to organizational
commitment (Karia & Ahmad, 2000; Karia & Asaari, 2006). Trust is also related to organizational commitment ( Ferres, Connell
& Travaglione, 2004; Chughtai & Zafar, 2006). Employees who have trust in the words and actions of management of
organization will most likely enjoy working in the organization and develops attachment with the organization. When trust level is
high, employees are supportive of, or committed to authorities and the institutions. Similarly experimentation also produces
commitment. A study conducted by Lok & Crawford (1999) on hospital found that a supportive and innovative culture is
positively correlated with commitment.

Above findings indicate some link between different dimensions of OCTAPACE culture (investigated as an individual construct)
with commitment. Based on the above findings it is difficult to establish conclusive relationship between OCTAPACE culture and
organizational commitment and also between different dimensions of OCTAPACE Culture and different types of organizational
commitment. So keeping in mind this constraint, the present research is designed to explore above relationships. Thus following
research questions are raised for the present study.

RESEARCH QUESTI ONS

1. Does OCTAPACE Culture influences organizational commitment?
2. Do different dimensions of OCTAPACE culture are significantly related to three dimensions of organizational
commitment (affective, normative and continuance commitment)?

RESEARCH METHODOLOGY

The present study is an exploratory research based on primary data using cross-sectional design.

Sample and Procedures

The target population of this study was employees working in the different public sector organizations in Bhutan. Data were
collected randomly using a standard questionnaire covering variables of interests from a total of 210 employees working at
different levels in their organization. Four public sector organizations were chosen for the study. Data were collected during
working hours with permission from the competent authority of organizations. Demographic data were also taken from
respondents. Approximately 32 years are the average age of respondents which consists of male and female in the ratio of 61 and
39 percent (approximately) respectively. All the necessary information regarding the study and ways to respond on questionnaire

were shared with all respondents. Respondents were assured of confidentiality of their responses and were told that their
responses shall be used for the research purpose only.

Measures

In the present study following scales were used. These scales were not adopted rather used in its original form.

Organizational Commitment was measured through using Organizational Commitment Questionnaire (OCQ), developed by
Allen & Meyer (1996). This scale measures commitment in three areas namely affective, normative and continuance commitment.
There are six items each of the three areas, making 18 items scale in all. Reliability of the scale was found to be .87 for affective,
.75 for continuance, and .79 for normative commitment (alphas).

Organizational Culture (OCTAPACE Culture) was measured using scale developed by Pareek (2003). The scale is a 40 items
instrument that gives the profile of the organizations ethos in eight values. These values are openness, confrontation, trust,
authenticity, pro-action, autonomy, collaboration and experimentation. The questionnaire is divided into two parts. In the first
part, there are twenty four statements comprising three statements of each of the eight values. The respondents are required to
check on a four point scale how much each item is valued in the organization. The second part contains sixteen statements on
beliefs and contains two statements on each of the eight values. The respondents check on a four point scale how widely each of
the value is shared in the organization. Cronbach alpha coefficient reliability of the scale was 0.83.

ANALYSI S AND RESULTS

As the study aims to explore the influence of OCTAPACE culture on organizational commitment and also different dimensions of
the culture on three dimensions of organizational commitment; correlation and regression analysis were carried out. Correlation
was used to see how all the variables of interest were related to each other. Regression analysis was applied to ascertain how
explanatory variables influence outcome variables. The data were analyzed with the help of Statistical Package for Social
Sciences (SPSS, Version 12). The result in the table below (table -1) shows relationship among variables used in the study. The
table reveals that OCTAPCE Culture is positively and significantly related to organizational commitment. The table indicates that
some of the dimensions of the OCTAPACE culture generate commitment among the employees in the organization of the study.

Table-1: Mean, SD and Correlation Coefficient among Variables (N= 210)

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Gender 1.40 .49
Age 32.50 3.81
Qualification 1.52 .50
Openness 2.93 0.32 1
Confrontation 2.84 0.37 .366** 1
Authentication 2.79 0.36 .567** .365** 1
Trust 2.61 0.29 .241* .171 .137 1
Pro-action 2.90 0.42 .236* .170 .303** .379** 1
Autonomy 2.46 0.37 -.029 .263* -.355** -.076 -.218 1
Collaboration 2.71 0.30 .146 .376** -.136 .370** .113 .223 1
Experimentation 2.73 0.28 .356** .159 .415** .130 .210 .197 .067 1
OCTAPACE
(Org.) Culture
2.74 0.18 .681** .704** .556** .539** .559** .163 .493** .476** 1
CC 2.00 0.87 .059 .189 .212 .300** .346** -.153 .080 .228 .307** 1
AC 2.03 0.76 .062 .142 .212 .115 .093 .191 .299** .272* .224 .437** 1
NC 2.71 0.82 .196 .001 .166 .398** .472** .036 .125 .089 .345** .501** .122 1
Org.
Commitment
2.25 0.62 .135 .152 .302** .313** .396** .171 .220 .263* .383** .869** .666** .726** 1
Sources: Data Analysis.
Note: *Correlation is significant at the 0.05 level (2-tailed).
**Correlation is significant at the 0.01 level (2-tailed).
CC = Continuance Commitment.
AC = Affective Commitment.
NC = Normative Commitment.


OCTAPACE Culture and Organizational Commitment

Following table reveals the relationship of OCTAPACE Culture and Organizational Commitment.

Table-2: Organizational Commitment as Functions of OCTAPACE Culture

Independent
Variables
Beta t-value Significance R
2
Adjusted R
2
F Level of
Significance
OCTAPACE
Culture
.383 3.523 .001 .147 .135 12.143 .001
Sources: Authors Compilation.

OCTAPACE culture was found to be significantly influencing ( = .383, t = 3.523; p = .001) organizational commitment. R
2
is
.147 which indicates that approximately 15 percent variation is explained in organizational commitment by OCTAPACE values.
F value found in this model is significant (F = 12.143, p = .001).

In order to know that how much different dimensions of the OCTAPACE culture influences different dimensions organizational
commitment, we need to focus on regression analysis presented in tables below:

Table-3: Dimensions of OCTAPACE Culture as Function of Affective Commitment (Stepwise Method)

Independent
Variables Entered
2
R
2

Change
Adjusted
R
2

F F
Change
Level of
Significance
Model 1
Collaboration
.299 2.655 .010 .089 .089 .077 7.048 7.048 .010
Model 2
Collaboration
Autonomy
.359
.271
3.214
2.424
.002
.018
.159 .070 .135 6.701 5.877 .002

Above table (table - 3) shows that two values of OCTAPACE (Collaboration and Autonomy) are explaining the variance in
affective commitment in significant manner. In model 1, collaboration was regressed on affective commitment and was found to
be significantly influencing ( = .299, t = 2.655; p = .01). R
2
is .089 which indicates that approximately 9 percent variation can be
explained in the affective commitment by the values of collaboration. F value found in this model is significant (F = 7.048, p =
.010). In model 2, Autonomy dimension of the OCTAPACE Culture, got added with the Collaboration ( = .271, t = 2.424; p =
.018). This explains approximately 16 percent variation in the formation of affective commitment (R
2
= .159). F value in this
model is also found significant (F = 6.701, p = .002).

Table-4: Dimensions of OCTAPACE Culture as Function of Continuance Commitment (Stepwise Method)

Independent
Variables Entered
2
Adjusted
R
2

F Level of
Significance
Model 1
Proaction
.346 3.126 .003 .119 .107 9.769 .003

In predicting continuance commitment, only Proaction of OCTAPACE culture was found to be significantly influencing ( =
.346, t = 3.126; p = .003). R
2
is .119 which indicates that approximately 12 percent variation can be explained in the continuance
commitment by the value of proaction. F value found in this model is significant (F = 9.769, p = .003).

Table-5: Dimensions of OCTAPACE Culture as Function of Normative Commitment (Stepwise Method)

Independent
Variables
Entered
2
R
2

Change
Adjusted
R
2

F F
Change
Level of
Significance
Model 1
Proaction
.472 4.545 000 .223 .223 .212 20.659 20.659 .000
Model 2
Proaction
Trust

375
.256

.444
2.350

.001
.022
.279 .056 .259 13.740 5.522 .000

Above table (table - 4) shows that two values of OCTAPACE (Proaction and Trust) are explaining the variance in normative
commitment in significant manner. In model 1, proaction was regressed on normative commitment and was found to be
significantly influencing ( = .472, t = 4.545; p = .000). R
2
is .223 which indicates that approximately 22 percent variation can be
explained in the normative commitment by the value of proaction. F value found in this model is significant (F = 20.659, p =

.000). In model 2, Trust dimension of the OCTAPACE Culture, got added with the Proaction ( = .256, t = 2.350; p = .022). This
explains approximately 28 percent variation in formation of normative commitment (R
2
= .279). F value in this model also found
significant (F = 13.740, p = .000).

DI SCUSSI ONS

The present study is an exploratory study aimed at achieving two objectives. Firstly to explore influence of OCTAPACE culture
on organizational commitment and secondly, to explore influence of different dimensions of OCTAPACE Culture on three
dimensions of organizational commitment. Findings of the study support the assertion that OCTAPACE Culture influences
organizational commitment significantly. It may be possibly that OCTAPACE Culture works as a psychological force that helps
in generating employees commitment towards their organization. Culture refers to values and belief systems of the organization
and if the same is in sync with the employees values and belief systems, then probably it results in employees engagement and
commitment. Thus culture not only affects employees job behaviour but also their mindset. It appears as if organizational culture
tends to influence employees commitment directly through cultural values (Black, 1999).

Regarding the second assertion, the study partially supports that different dimension of OCTAPACE culture influences different
dimensions of organizational commitment. Data indicates that culture with Collaboration and Autonomy values influences
employees Affective commitment. This may be probably working together and in team (collaboration) helps in addressing
business problems more effectively and may be enjoyable also and this may probably develops emotional attachment with their
colleagues and organization. Similarly people, who work independently (autonomy), feel valued and consider it as a reward
(intrinsic satisfaction) and this may increase employees affective commitment. Autonomy was found to be the positively related
to affective commitment (Karim, 2010). Self-Determination theory asserts that autonomy is one of the individuals basic
psychological needs which are able to activate self-determined behavior. Thus having the opportunity of responsibility and
freedom to develop own work activities, can encourage the sense of identification and attachment to work that in turn increases
employees affective commitment.

Proaction dimension of OCTAPACE Culture was found to be the predictor of continuance commitment in the study. Proaction
culture is characterized as taking the initiative, preplanning and taking preventive action and calculating the payoffs of an
alternative course before taking action. Continuance organizational commitment is rests on the Side-Bet theory which states that
employees who feel that they are favorably and properly rewarded for their investment in the organization, want to continue in the
organization. In Proactive culture, employees invest their knowledge, skills; abilities etc. for taking initiatives, preplanning etc.
and this investment make them probably to continue with the organization.

Normative commitment is being predicted by Proaction and Trust dimensions of the OCTAPACE Culture. It means proactive and
trusting organization creates a sense of moral obligation to continue with the organization. In proactive culture employees are
encouraged to take initiative which comes through some degree of faith in the ability of employees and sense of ownership and
this probably results into normative commitment. An organization characterized by climate of trust with respect to behaving,
thinking and feeling, among colleagues and between employee and employer, people probably feel that it is morally binding on
them to honestly work with the organization.

Similarly when employee feels that they are treated fairly, their knowledge, skills and opinions are valued by organization,
information are shared openly, people are honest etc., employees also develop a sense of respect towards the people and the
organizations, and think that for them it is morally binding to show commitment towards the organization. Trust and faith from
their colleagues and management is likely to simulate employees to reciprocate by increasing their loyalty to the organization.
When trust levels are high, employees are supportive of, or committed to, authorities and institutions that the authorities represent.

CONCLUSI ONS

It can be argued that not only other cultural framework but also culture marked with OCTAPACE ethos and values generates
employees commitment towards their organization. The study also revealed that if not all but half of dimensions of OCTAPACE
Culture namely Collaboration, Autonomy, Proaction and Trust significantly influence different forms of employees commitment.
It reveals that organization should focus more on these aspects of OCTAPACE Culture to have effects on different types of
commitment by their employees.

I MPLI CATI ONS

The findings obtained from this research seem to suggest that organizations that require their employees to develop commitment
should demonstrate their commitment towards OCTAPCE values. Employers concerned with developing different types of
employee commitment need to focus their attention on teamwork and group efforts (collaboration), autonomy, proaction and
mutual trust in their work environment that can foster positive perceptions of organizations. Fostering these cultural elements can
act as a catalyst in enabling the employee to show commitment towards their job and organization which in turn can positively
influence their performance.

Thus the implications of this study are particularly significant when considering organizational development interventions
designed to increase employee commitment.


LI MI TATI ONS AND FUTURE RESEARCH

The findings of the study should be viewed with a few limitations in mind. Self-report measures were used to measure the
constructs. It is well known that this might cause common methods variance challenges. Another limitation can be the use of
employees alone to measure variables could have affected the validity of the responses. Employees might not have been fully
aware of some or all of the OCTAPACE Cultural values within their organizations and might have given inaccurate responses.
Small sample size is another limitation.

Research design is cross-sectional which reflect the picture of specific point of time. Probably longitudinal design will be better to
get better picture of the issue. The author recommends undertaking future research factoring above limitations to have better
understanding of the relationship and influences of issues taken in the study. Nonetheless, the study shall be treated as valuable
because of its empirical assessment of the issues which is relevant in present time and are unexplored.

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Volume 1, Number 2, October-December 2012 ISSN (P):2279-0934, (O):2279-0942

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